While the negative tone has righfully gotten traders nervous, we believe the 300 plus point decline yesterday and the initial 100 plus point decline today, presages a bounce to the upside within days. Quite frankly we were looking for it today but then the unemployment numbers tripped up the market. However, early next week should see a bounce.

Traders with the fortitude to go long this market, should look at call options in stocks like Amazon (AMZN), Potash (POT), Agrium (AGU) Bucyrus (BUCY), Apache (APA) and Devon (DVN). 

We are still preaching however that this is a bear market, so take early profits and play it safe and go with the October options.

 Tags: AMZN  AGU  BUCY  APA  DVN

Yesterday, we posted a trade which called for the minimum purchase of 6 BUCY August 65 calls and 2 BUCY August 55 puts. The costs were $2.09 each for the calls and $1.94 each for the puts. Total price was $1642. The calls can now be sold for $4.70 or  $2,820 total for the 6 contracts. Readers who acted on the trade should exit now. Hold the puts, hopefully, the stock drops next week and the options climb back to break-even, for bonus money. Profits right now, are $1,178 or 71% before commissions.

For more trades like these, visit http://www.navivest.com and follow link for services. From there, you can take a free two week subscription to our Options Capitalist service.

Bucyrus International (BUCY) will be releasing earnings after close of market today. We are looking for great earnings that will move the stock to the upside.

We are buying call options, with some put options to limit downside damage if earnings are disappointing. Buy 6 August 65 calls and buy 2 August 55 puts. Costs for the calls are now $2.09 and the puts are $1.94. The trade as posted with 6 calls and 2 puts will cost $1,642 with the calls costing $1,254

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